Organizational Environment: Surviving the Global Marketplace (Essay Sample)

Organizational Environment: Surviving the Global Marketplace
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Organizational Environment: Surviving the Global Marketplace
Book Summary
The global environment has both direct and indirect influence to any organization operating internationally. Pfeffer and Salancik (2003), elucidates that organizations are dependent on external physical and financial resources that are obtained from the external or global environment. They point out that understanding of an organization’s environment is the key to comprehending its structure and actions that need to be taken when dealing with changes in their environment. Similarly, Pfeffer and Salancik (2003) elaborate on how organizations survive from the external environment. This survival is highly dependent on how efficiently the organization can acquire and retain resources from the external environments.
In their book, Pfeffer and Salancik (2003) indicate that prior decisions, by managers, are a contributing factor to several external factors faced by an organization. Managers have the obligation of manipulating the environment for it to suit the organization and its operations (Pfeffer & Salancik, 2003). The two also describes how organizations try to manage their social context with the aim of establishing a favorable global environment. Similarly, understanding the relations existing between an organization and its environment is a crucial skill that the management should exhibit about the adoption of the external orientations and comprehend the organizational functioning (Pfeffer & Salancik, 2003). Additionally, the management should understand the external challenges facing their organization to develop a strategy to overcome those challenges.
Blog Article Summary
Global companies face numerous challenges that call for particular attention. In their article, Dewhurst, Harris and Heywood (2012) indicate that running a global organization has been a major business challenge for years. In their site, they discuss how profound globally operating companies experienced low performance in comparison with locally focused organizations in the year 2011. In their survey, Dewhurst, Harris and Heywood (2012) discovered that firms that direct their survival on external environments to acquiring natural resources adapt more favorably to dynamic regulatory authorities. On the other hand, consumer-oriented organizations have some challenges on their local operations while maintaining coherent global operations (Dewhurst, Harris & Heywood, 2012). Similarly, despite the difference in operations, most organizations face similar challenges when it comes to the global expansion.
According to Dewhurst, Harris and Heywood (2012), no particular model can encompass all global organizations. However, most global firms are faced with similar challenges under costs, people, management strategies as well as the global scale risk. They also indicate that how critical these four elements are is dependent on the companies’ model of operation, the global strategy, and their histories. Although global expansion has its substantial benefits, it also comes with several strategic challenges, which include challenges of maintaining local flexibility as they expand globally (Dewhurst, Harris and Heywood, 2012). For firms to enjoy the benefits associated with global expansion, global companies need to adequately deal with the challenges (people, costs, and risk of global scale).
Training Course Summary
University of London (2016) in its Global MBA Module Specifications indicates that successful organizations are characterized by abilities to effect change and “win” competitive advantage. The module provides fundamental theories that can be applied by innovative firms that need to operate globally. Additionally, the course provides adequate knowledge to spearhead innovation in the modern dynamic global market. The module also provides a chance for evaluation of externalities in the business world involving innovation trends to equip organizations with essential knowledge on strategies to take in developing an internal environment to facilitate expansion.
University of London (2016) Global MBA course explains the dynamic internal and external organizational settings. It gives an understanding of the available opportunities and strategies to follow in embracing change. Innovation is the key to organizational growth. Therefore, an organization’s ability to innovate and stand out contributes to its survival in the global market. The course enables learners to acquire knowledge on basic innovative strategies that guarantee substantial growth of a business expanding to the world markets. It also provides information on different technologies affecting business (positively or negatively).
Journal Article Summary
A study by Knight and Cavusgil (2004) investigate organization adaptation in the foreign market using the case of Born-Global Firms. The authors highlight that innovativeness, organizational capabilities to achieve tremendous success in the global market and knowledge are the key elements in measuring the performance of enterprises. According to the article, companies that operate globally in their early stages exhibit exceptional managerial skills and commitment of resource to the global operations. For successful adoption of the international trade, the firms study the international market, understand them, and then formulate strategies or capabilities to facilitate their international goals (Knight & Cavusgil, 2004). According to Knight and Cavusgil (2004), technological advancement and globalization are the two key contributors to the early adoption of internationalization by firms expanding to the external business environment. Additionally, from their study, it was clear that the innovative nature of the born-global firms is the key to success in the global business environment.
Knight and Cavusgil (2004) indicated that resource-based perspective stresses on organization’s foundational resources, which are paramount since they provide stability for strategy development in diverse business environments. From their study, it is evident that entrepreneurs with a stable market orientation are the most likely to for the born-global firms. Consequently, organizational culture and business strategies are essential elements in the adoption of internationalization. Similarly, human, financial and physical resources have been highlighted as primary factors influencing competitive advantage among young organizations. “At the strategy level, global technological competence, unique products development, quality focus, and leveraging foreign distributor competences all appear to be significant drivers of superior performance overseas,” (Knight and Cavusgil, 2004, p. 136).
News Publication Summary
In an interview, David P. Kelly suggested that investors should ...